The Research Of Relationship Between The Heterogeneity Of TMT And Enterprises Performance

This paper takes the booming real estate market in China in recent years as the research object, based on the upper echelon theory and strategic transformation theory, and analyzed the relationship among the top management team of listed companies of our country estate, corporate strategic change and the enterprise performance.Real estate industry as the leading industry of the national economy in recent years in China, the market economy in our country is good for promoting economic development, and be able to pull the economic growth in China. At the same time of rapid growth, the dispute of the real estate market in China is continuously, our country government also repeatedly to carry on the macroeconomic regulation and control, in this case, the real estate enterprises need to constantly change to adapt to the change of macro policy. Real estate enterprises are faced with the increasingly complex market environment, how enterprise’s top management team cope with the challenges arouse by strategic change and guarantee the business performance through effective change turned to be this article’s focus. At present, the academia and business all think that change is fundamental to guarantee the enterprise vitality. Strategic change for the real estate enterprises of present stage is very important.In1984, Hambrick and Mason put forward the Upper Echelon. They think people, with unique personality, should be the main body of the strategic change. Before that, Michael Porter and other scholars would prefer to treat the organizations as the rational individuals in their research achievements of enterprise strategy management. Upper echelon theory tried to find the potential logic between the enterprise performance and the strategic behavior from the aspect of the objective characteristics of the top management team. At present, the research of upper echelon needs to be specific digging and deepen, because it is still in its infancy. Motivation of this study can be roughly classified into three parts. First, this paper tried to study the impact on the business performance of senior management team of the objective characteristics of the real estate listed companies of our country. Second, the paper tried to study the impact on corporate performance from strategic change of listed real estate enterprises in our country. Third, research the intermediary role of strategy change between an enterprise top management team and corporate performance.Based on the above research purpose, this paper is divided into three parts.First of all, this paper discussed the relationship among objective characteristics of top management team, strategic change and enterprise performance, starting from the heterogeneity of the top management team. Most of scholars agree that the manager’s rationality is limited, and rejected the economists see managers fully rational. In1992Johnson pointed out that for the current management research although scholars tend to study the uncertainty, complexity and chaos theory, but they are still focusing too much on the aspect of non-human nature and the research on the characteristics of people are still in a state of relative lag. And different top management teams have different characteristics, even in the same situation, they would make a different strategic decision, which leads to different enterprise performance. Most of existed studies ignored the top management team heterogeneity effects on strategic decisions.Second, most of scholars agree that strategic change can help enterprises to improve performance. But the reality of the cases showed that the success rate of strategic change in practice is low, in the practice of strategic change, successful cases are much less than failure, so the strategic change is not as ideal scholars say. This paper argues that we can analyze strategic change from the angle of contingency and mediating role of strategic change between top management team and business performance.Finally, this section based on the second part, using professional software, based on the relevant data of the listed company of real estate in our country to carry on the empirical analysis research, to verify that the upper echelon theory, the rationality of the application of the real estate listed companies in our country. All of these are based on more ignored intermediary role of the strategic change, while the current domestic scholars in the study of the relationship between the characteristics of China’s listed company’s top management team and the corporate performance.This paper uses empirical research methods, after reading a lot of existing literature related to the study, this paper proposed research model and underlying assumptions, choose204domestic listed real estate companies as samples, using SPSS software for data analysis and hypothesis testing, and ultimately get the results and make targeted recommendations,hoping to be able to help real estate companies.The study of the process is:(1) determine the research direction and research questions;(2) related literature review,(3) research model and research hypothesis;(4) data collection and research;(5) analysis of empirical research;(6) the results of the analysis and Suggestions, etc. Full text can be divided into three levels:the first layer is the first and second chapter, this part are research mentality and the theoretical basis, this paper expounds the strategy of the top management echelon theory and the current relatively popular theory of change and development, etc. The second level is the third chapter to the fifth chapter, it is the empirical research part of this article, based on the existing theoretical basis, put forward the research model and research hypothesis of this paper, and analyze the relevant data of listed companies of our country estate regression. The third part is chapter6of this article, mainly summarizes the research conclusion and corresponding suggestions according to the results of the study, this part also discussed about the future research.By analyzing the construction of theoretical models and empirical data, we draw the following conclusions.Firstly, age of the top management team heterogeneity plays a significant negative regulation role on firm performance.Secondly, top management team’s education heterogeneity is negatively related to the enterprise performance which shows that the higher the TMT education heterogeneity is, the lower the enterprise performance will be, and vice versa.Thirdly, the top management team’s education heterogeneity is negatively related to the enterprise strategic change. Fourthly, the professional background heterogeneity of top management team is negatively related to the enterprise strategic change.Fifthly, there is a positive correlation between the strategic change and enterprise performance.Sixthly, strategic change plays an intermediary role between top management team’s working time heterogeneity and enterprise performance.Last, strategic change plays an intermediary role between the senior management team’s educational background heterogeneity and enterprise performance.This article may have the following two innovations.Firstly, researching the relationship between top management team heterogeneity and enterprise performance, combined with the country’s historical and cultural background. Abroad study of top management team heterogeneity and enterprise performance has been very mature, literature emerges in endlessly, when we learn from foreign scholars’ research, we should consider the difference between China and foreign countries. In the European and American countries, they would prefer the individual orientation, culture advocating independence, freedom, personality, and we are under the influence of Confucian culture, relationship orientation, authority orientation, collectivism, community culture and so on, these all affect the "localization" process and results of study abroad.Throughout the past research, many scholars have done research on top management team heterogeneity and enterprise performance relationship, the conclusion is inconsistent, the reason may be that the choice of sample data, and the differences on the definition of the senior management team, but the author thinks that one important reason is that many scholars ignore the intermediary effect of the strategic change. Therefore, in this paper, taking the strategic change as intermediary variables to analyze relationship and the inherent logic between the top management team heterogeneity and enterprise performance is one of the main innovation points in this paper.Finally, although discussed from theoretical and practical analysis of the upper echelons theory and strategic change problem, but limited by the theoretical level and knowledge, there still are issues need to be further addressed. Firstly, in this paper, the study of real estate companies selected for the domestic market, the domestic market system is not perfect, the authenticity of listed companies to disclose data requires further research, which affects the accuracy of the empirical study to some extent. This article is currently only for real estate in this particular industry, the conclusions and recommendations of the universal need for further research.Secondly, in the measurement of strategic change, taking the workload and cost issues into account, this paper is to examine the real estate listed companies with divestitures and acquisitions to strategic change. The accuracy of this data exists a certain lack, and it is not very comprehensive.In this paper, the manipulated variable is not set, building aspects of the model is relatively not very well, there’re certain impacts on analysis result.